Securing Jobs Through Forest Sector Innovation and Renewal

2011/61 (a)

Backgrounder

The Government of Canada is contributing $53.5 million to the transformation of the country’s forest sector. Federal programs are supporting important investments that improve the environmental performance of mills to help position the industry at the forefront of the clean energy economy.

As well, the Government is working with industry, provincial governments and other key stakeholders to help our forest industry take advantage of the growing bioeconomy where innovation and environmental performance are key.

Today’s project funding announcement falls under four distinct programs:

Pulp and Paper Green Transformation Program (PPGTP)

The Government of Canada announced the creation of this program in June 2009. Canadian pulp and paper companies that produced black liquor were eligible to access $1 billion in funding to improve their energy efficiency, their capacity to generate renewable energy, and their overall environmental performance at their pulp and paper facilities.

Today’s PPGTP announcements:

  • The Canfor Pulp mill in Prince George is receiving $6.41 million for its Energy and Air Emissions Upgrade project. This project will significantly reduce the mill’s emissions of particulate matter and allow it to generate additional renewable electricity.
  • The Zellstoff Celgar mill in Castlegar is receiving $9.73 million for the second phase of its Green Transformation Project, which will improve the mill’s energy efficiency, increase its renewable electricity production and reduce its environmental footprint.
  • Howe Sound Pulp and Paper will receive $780,000 for a project designed to increase its energy efficiency and generation of renewable electricity.
  • Neucel will receive $6.46 million for a project that will improve the energy efficiency of its Port Alice mill through upgrades to the mill’s evaporator plant and recovery boiler. This project will reduce the mill’s GHG emissions by 30,300 tonnes per year.
  • Collectively, these four projects are expected to generate enough renewable electricity to power 2,600 homes. They are also expected to save enough energy to power an additional 14,000 homes.

Investments in Forest Industry Transformation (IFIT)

The $100-million Investments in Forest Industry Transformation Program addresses the broader need for a transformation in the forest industry that will lead to a more diversified and higher value product mix in the forest sector. This program was announced in Budget 2010 and runs until March 2014.

Today’s IFIT announcements:

  • The Nechako Lumber mill in Vanderhoof received $2.11 million to install an Organic Rankine Cycle system to capture waste heat and to produce power for external sale – the first project of its kind in a Canadian mill, with significant potential for replication across the sector.
  • The IFIT program has just announced its second and final Call for Proposals, to support additional innovative projects for Canada’s forest sector.

Transformative Technology Research Program (TTP)

This program supports the development and implementation of innovative products and processes, which will enable the forest products industry to extract more value from forest resources.

  • FPInnovations, Canada’s national not-for-profit forest products research institute will receive $25.5 million for continued work on the development of emerging and breakthrough technologies that will help transform Canada’s forest products industry.

Transformative Technology – Pilot Scale Demonstration Program (TTP-PSD)

The objective of the TTP-PSD is to demonstrate the feasibility of new forest products technologies in pilot-scale demonstration in industrial settings.

  • StrongWood Technologies in Chemainus received $900,000 to conduct tests relating to the laying of veneer strands in engineered wood products to determine optimal strength of strand orientation and distribution.
  • Mercer International’s Zelstoff Celgar mill in Castlegar received $1.67 million for a Generator Acid Purification (GAP-S) Project, which will treat the chlorine dioxide generator effluent from the pulp production process and reduce the amount of chemicals purchased and discharged after use.

For more details about the Pulp and Paper Green Transformation Program, visit http://cfs.nrcan.gc.ca/subsite/pulp-paper-green-transformation.

For more details about the Investments in Forest Industry Transformation program, visit http://cfs.nrcan.gc.ca/subsite/investments-forest-industry-transformation.

Media may contact:

Julie Di Mambro
Press Secretary
Office of the Minister
Natural Resources Canada
Ottawa
613-996-2007

or

Media Relations
Natural Resources Canada
Ottawa
613-992-4447

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media/index-eng.php.